1. Management Verifications & Sampling Methods
Regional Operational Programmes Beneficiary and Intermediate Body Training Seminar
Management Verifications & Sampling Methods
Vincent Dunphy
Programme Executive, EU Division, Southern Regional Assembly

2. Cascade Structure Certifying Authority Managing Authority
Submit declarations to EU, Annual accounts, IT system
Managing Authority
Manage OP, Verify delivery, Oversee MVs,
Prepare claims for EU, Anti-fraud measures
Intermediate Body
Delegated functions from MA
Selection, Letters, MVs etc.
Beneficiary
Body receiving EU aid

3. ERDF Claim Requirements
Completed Declaration (claim) on E Cohesion IT System( previously Form B1)
Reconciled Transaction Listing
Indicator data listing
Contracts listing to be provided and Contract Notices, RFTs, Tenders Evaluation Reports, Contracts, Award Notices (above EU threshold contracts only) to be uploaded

4. Beneficiary Responsibilities
Only eligible expenditure actually incurred & paid under the terms of the operation approved is claimed.
A clear audit trail exists in relation to ERDF co-funded expenditure: all claims are supported by receipted invoices or where this cannot be done, by accounting documents of equivalent probative value.
There is a separate accounting code for each project.
There is no overlapping of funding from other EU sources.

5. Beneficiary Responsibilities(2)
Original supporting documentation is retained in accordance with the document retention period communicated by the Managing Authority.
Information & Communication requirements have been complied with in accordance with the ‘Information & Communication Guidelines for European Structural and Investment Funds ’.
Where appropriate, physical checks should be carried out, and documented, on the project to ensure that project delivery is in line with financial progress

6. Management Verifications
Legal Basis
Art. 125, Regulation (EU) 1303/2013 (CPR)
Verifications will consist of :
(a) administrative verifications in respect of each application for reimbursement by beneficiaries and
(b) on-the-spot verifications of operations ( sample basis)
The frequency and coverage of the on-the-spot verifications shall be proportionate to the amount of public support to an operation and to the level of risk identified by such verifications and audits by the audit authority for the management and control system as a whole.
On-the-spot verifications of individual operations may be carried out on a sample basis

7. Management Verifications (2)
Carry out before expenditure is declared to the next level
Complete before CA includes expenditure in a claim to the Commission
Certification of 100% correctness but testing 100% of items of expenditure, though desirable, is not practical
Sampling method and risk factors used (e.g. value of items, type of beneficiary, past experience) need to be documented
Standard checklists to be completed and attached with the claim on the E Cohesion IT System
Every transaction included in a claim needs to be supported with appropriate documentation and can be traced back to bank statements
Verifications cannot be carried out by staff who approve projects and/or make payments to beneficiaries.

8. Management Verification Checklists
2 Standard checklist to ensure compliance with national & union rules and requirements
1) Administrative Verification Checklist
– to be completed before a claim is declared to the next level
2) On-the-Spot Verification Checklist
– to be completed when on-the-spot checks are undertaken, in accordance with the Sampling Method

9. Administrative Verification Checklist
Standard checklist to ensure compliance with national & union rules and requirements
Part I: Introduction
Part II: Financial Summary and List of Errors (ex-ante and ex-post)
Part III: Verifications at scheme level, claim level and transaction level
Part IV: Annexes (Project Sample List, Project Sample Schedule)

10. Administrative Verification Checklist
Part III.A: Verifications at Scheme Level
Procedures Manual
Document Retention
State Aid
Indicators (indicator data listing to be uploaded with claim)
Information & Publicity
Separation of Functions
Horizontal Principles (non-discrimination & equal opportunity)
Risk Assessment
Anti-Fraud Measures
Conclusions & follow-up

11. Administrative Verification Checklist
Part III.B: Verifications of Total Declared Expenditure
Audit Trail
Eligibility
Procurement (schedule of procurement contracts) / Value for Money
Revenue Generation
Conclusions & follow-up

12. Administrative Verification Checklist
Part III.C: Verification of Project Expenditure for Selected Sample
Sampling Methodology
Project selection / approval process
Eligibility / transaction testing (transaction listings)
Durability of Operations
Indicators – confirmation for selected sample
Procurement – detailed check of contracts selected as part of sample
C.6.1: Procurement checks for below EU threshold contracts
C.6.2: Procurement checks for above EU threshold contracts
- Description of ‘value for money’ checks

13. Administrative Verification Checklist
Part III.C: Verification of Project Expenditure for Selected Sample …
Revenue generation
Reality of the expenditure
Information & Publicity (detailed check for selected sample)
Conclusions & follow-up

14. On-the-Spot Verification Checklist
Standard checklist to ensure compliance with national & union rules and requirements
– to be completed for each project selected for on-the-spot checks
Timing: Recommended to be carried out when project is well underway, in accordance with the agreed Sampling Method – complementary to Administrative Verifications
- see IB Guidance
Purpose: Check anything that was not covered during Administrative Verifications and in particular: delivery of the product / service, physical progress, publicity.

15. On-the-Spot Verification Checklist
Checklist elements:
Compliance with Sampling Method
Eligibility and Transaction testing
Reality of operation (delivery & durability)
Physical progress (data storage, data quality, inspection, selection process)
Information & Communication requirements (verification of originals, obtaining of copies) – if required
Public Procurement / Value for Money (verification of original documentation) – if required

16. Art 125 Checklists
MA’s are currently working on simplifying the checklists specifically with a view to reducing the administrative burden in completing them but must still ensure that all elements of the CPR are met ( to ensure correctness and eligibility of expenditure being declared)

17. Sampling methodologies (SM)
If an IB checks 100% of expenditure during a management verification, then SM not required although an IB will need to certify that such is the case each year
If IB decides to carry out any part of the management verifications on a sample basis, the SM must be established & approved by the MA annually before any verification work
Coverage of expenditure selected for transaction testing needs to account for risk factors such as value, type of beneficiary, past experience

18. Sampling methodologies (SM)
Procedure to verify sample of contracts below EU threshold for procurement checks is part of SM
In selecting projects for on site checks, method of selection needs to be part of SM
MA’s have issued a SM template to IB’s and LEO’s, as IB for M1, will need to complete same
More detail in IB Guidance on Conducting Management verifications